How to pay off debt in a year

Monthly payment to pay off debt in 12 or 24 months

To pay off a credit card balance at 22.15% APR in 12 months, you need $187.34 a month for $2,000 and $2,810.00 a month for $30,000. The table shows the payment for 6 balances, in 12 months and in 24 months, and the interest each one costs.

The table assumes the APR stays at 22.15%, you make no new purchases and you pay no fees. Interest is the balance times the APR divided by 12, rounded to the cent each month. Each payment is the smallest amount, to the cent, that pays off the balance in that many months. The last payment can be a little smaller.

The 22.15% APR comes from the Federal Reserve’s G.19 consumer credit release of October 7, 2026. It is the revised average rate for the second quarter of 2026 on credit card accounts at commercial banks that were charged interest. Your own APR is on your card statement.

On $10,000 at 22.15%, the 24-month payment is $417.14 a month lower than the 12-month payment, and the interest is $1,228.52 higher. In every row, the 24-month payment is lower and the interest is higher, because the balance stays on the card longer.

For one card, see the guides on paying off $5,000 and paying off $10,000 of card debt. They show the payment for 1 to 5 years at 18%, 22%, 25% and 29% APR. Their closest rate is 22%, so their 22% payments are a little lower than this table’s.

To get the payment for your own balance, APR and date, use the free credit card payoff calculator and choose Target date under Calculate using. It shows the smallest fixed monthly payment that pays off the balance by that date, with the same code as this table. It runs in your browser with no sign-up.

Why dividing by 12 is not enough

Dividing a balance by 12 leaves out the interest, so 12 payments of that size do not pay it off. $10,000 divided by 12 is $833.33. At 22.15% APR, the first month’s interest on $10,000 is $184.58, so only $648.75 of the first $833.33 payment lowers the balance.

Paying $833.33 a month on $10,000 at 22.15% APR takes 14 months and costs $1,409.75 in interest. The 12-month payment from the table, $936.67, takes 12 months and costs $1,239.97. On the same balance and APR, the extra $103.34 a month pays the card off 2 months sooner and saves $169.78 of interest.

A 3-debt plan for 2027

To pay off three debts in 2027, our example pays $531 a month more than their minimum payments and moves each paid-off debt’s payment to the next debt. The three debts are a credit card, a store card and a personal loan, $8,800 on December 1, 2026. Their minimum payments add up to $324.53 a month. The first of the 12 payments is in January 2027 and the last in December 2027.

The credit card’s 22.15% and the personal loan’s 11.86% are the Federal Reserve’s revised rates for the second quarter of 2026, from the G.19 release. The first is the average on credit card accounts that were charged interest, the second the average on a 24-month personal loan, both at commercial banks. The store card’s 29.99% and the loan payment are examples.

Both card payments are the first month’s minimum payment, and our example uses the Chase rule for both cards. Chase says that in most cases its minimum payment is $40 or 1% of the statement balance plus interest, whichever is greater. Chase also adds late fees, which this example leaves out. On the credit card, 1% of $4,200 is $42.00 and the first month’s interest is $77.53, so the payment is $119.53. On the store card, $11.00 plus $27.49 of interest is less than $40, so the payment is $40.00. Under that rule a minimum drops as the balance falls, but our example keeps each payment the same every month. On its own, $165.00 a month pays off the personal loan in 24 months.

Every row moves each paid-off debt’s payment to the next debt, as our calculator and the app do. The monthly total is smaller in a month when a debt is paid off. The table assumes no new purchases, no fees and the same APRs. Interest is the balance times the APR divided by 12, rounded to the cent each month.

In our example, $531 more a month pays off the three debts in 12 months instead of 38, and saves $2,334.32 of interest with the highest APR first. The no extra row also moves each paid-off debt’s payment on, so all of that saving comes from the $531.

With the highest APR first, the debt avalanche, the store card is paid off in February 2027, the credit card in September 2027 and the personal loan in December 2027. With the smallest balance first, the debt snowball, the store card is paid off in February 2027, the personal loan in July 2027 and the credit card in December 2027. With the same $531, the avalanche costs $148.14 less interest than the snowball.

$531 is the smallest extra in whole dollars that pays off these three debts in 12 months with the highest APR first. We ran the plan for every whole-dollar extra from $0 up. With $530 more a month, the plan takes 13 months.

Open this plan to see the three debts in the free debt payoff calculator, with the highest APR first and $531 more a month. Change any number to see your own plan. For a step-by-step start with four debts, see how to start paying off debt.

If the payment is too high

If the 12-month payment is more than you can pay, a 24-month goal needs a smaller payment and costs more interest. At 22.15% APR, $10,000 needs $519.53 a month for 24 months instead of $936.67 for 12, and the interest rises from $1,239.97 to $2,468.49. The 24-month column of the payment table shows the same for each balance.

In the 3-debt example, $120 a month more than the minimums, $444.53 a month in all, pays off the three debts in 24 months with the highest APR first. The last payment is in December 2028. The interest is $1,797.50, against $788.35 for the 12-month plan with $531 more. With the smallest balance first, the same $120 takes 25 months.

A credit card statement may also show the payment for a 3-year payoff. Under Regulation Z, credit card statements generally must include a Minimum Payment Warning. It says how long paying only the minimum would take and what it would cost in total. When that estimate, rounded to whole years, is more than 3 years, it also shows the monthly payment that pays the balance off in 36 months. It also gives a toll-free number for information about credit counseling.

If even the minimum payments are more than you can cover, see When to talk to someone below.

Track the plan on iPhone

Debt Payoff Planner: Tracker is an iPhone app for paying off debt with the snowball or avalanche method. You type in each debt, and it asks “How much extra could you pay each month?” When one debt is paid, its payment moves to the next. It is free for up to 3 debts, so this 3-debt plan fits in the free version, with no account and no bank link. Premium adds unlimited debts. See it on the App Store.

When to talk to someone

• If your payments take more than you can cover each month, a nonprofit credit counselor can go through your budget and your debts with you. The Consumer Financial Protection Bureau says credit counseling can be free or low cost, and that counselors may charge for some services. It points to the National Foundation for Credit Counseling (nfcc.org, 877-360-6322) and the Financial Counseling Association of America (fcaa.org). Get any fee in writing before you sign up.
• If a debt collector or your card issuer treats you unfairly, you can submit a complaint to the CFPB at consumerfinance.gov/complaint or (855) 411-2372, Monday to Friday, 9 a.m. to 6 p.m. ET.
• If a company wants a fee before it settles any of your debts, the FTC calls that a warning sign. You can report it at ReportFraud.ftc.gov.
• If you are sued over a debt and your income is low, a legal aid office may help for free. Find the one near you at lsc.gov.
• If money worries leave you in crisis, call or text 988 to reach the 988 Suicide & Crisis Lifeline. It is free, confidential and open 24/7. In an emergency, call 911.

Outside the US, look for a free debt advice service run or approved by your government.

Sources

• Federal Reserve, G.19 Consumer Credit, release of October 7, 2026
• Chase, How to calculate your minimum credit card payment
• Consumer Financial Protection Bureau, Regulation Z, § 1026.7 Periodic statement

Sources checked on October 20, 2026.